To buy or sell first, that is the question. Figuring out when to sell and when to start looking, or vice-versa, is a tricky arrangement like the chicken and egg scenario, isn’t it? Timing is everything, especially when it comes to ensuring a roof is over your head. And if the move is due to a job relocation, new baby on the way, the start of the school year for your children, getting the timing right is vital. Sell first and you may face a tight deadline to find another house, or be forced to find a temporary home and face making two moves in less than a year. Buy first and you may be saddled with two mortgage payments, plus taxes and insurance payments, for at least a couple months. That’s money tied up and could impact your ability to finance your next home. While there’s no perfect scenario, there’s less pressure, stress and risk when you your house is sold first. That way you know how much money you’ll have on closing the deal, and that’ll help you figure out an affordable price range for your next home. Plus, if you’ve already sold your home, you don’t have to make your offer on that new home you’re eying contingent on selling your current home.?Market conditions dictate too. ?If it’s a seller’s market, meaning there’s a shortage of homes for sale, it’s best to buy first and sell later. When the selection is ample, in a buyer’s market, it’s best to sell first. Sometimes the seasons make a difference too. In spring sales are more brisk and will ensure you have a buyer and plenty of properties to choose from for your next abode. In winter, the pickings are at times slimmer, as are the number of house hunters. Often homeowners are able to time their sale and purchase so they happen on the same closing date. As a buyer, you can make your offer conditional on the sale of your existing home, or when selling, you can try to extend the closing period to give yourself more time to find your next home.
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